Salesforce is again in talks about the possible acquisition of software company Informatica. The attempt that fell through last year now seems to have been revived.
Sources close to the negotiations report that an agreement could be announced as early as this week, although no final decision has been made yet. This is according to Bloomberg.
After a failed acquisition attempt in April 2024, Salesforce appears to be interested in cloud data management company Informatica again. The talks are at an advanced stage. More than a year ago, there were also rumors that the companies were in negotiations, but at the time, they were unable to agree on the terms.
Informatica, based in Redwood City, California, helps customers manage their data in the cloud and has long been seen as a potential takeover target. The company currently has a market value of approximately $6.8 billion and roughly $1.9 billion in debt.
An acquisition could be a strategic move for Salesforce in the increasingly intense competition surrounding AI-driven databases. However, there is overlap between Informatica and Salesforce’s MuleSoft division, which could potentially lead to further investigation by regulators.
Investors and acquisition appetite
If the deal goes through, it would be one of Salesforce’s largest acquisitions ever. The San Francisco-based company is known for its appetite for acquisitions. In the past, Salesforce has acquired more than 70 companies, including MuleSoft ($6.5 billion), Tableau ($15.7 billion), and Slack ($27.2 billion).
It is striking that activist investors have previously pressured Salesforce to stop making large acquisitions and focus more on organic growth. To satisfy investors, the company even dissolved its acquisition committee and implemented cost-cutting measures. The current interest in Informatica suggests that this course has now been revised.
In addition to Salesforce, Cloud Software Group, which owns Citrix, is also said to be interested in Informatica. Negotiations between Salesforce and Informatica could still fall through, or another buyer could emerge.
Informatica was acquired in 2015 by private equity firm Permira and the Canada Pension Plan Investment Board in a $5.3 billion transaction. In 2021, they took the company public again. Permira remains the largest shareholder with nearly 32 percent of the shares, while CPPIB owns approximately 25 percent.